Organic Snacks Market - Forecast(2023 - 2028)

Organic Snacks Market Overview

Organic Snacks Market size is estimated to reach $34.4 billion by 2027, growing at a CAGR of 12.7% during the forecast period 2022-2027. Snacks can be delineated as a small serving of food that doesn’t necessitate tedious preparation and is normally consumed in between meals. However, the word organic simply denotes that the snacks are prepared from ingredients that are deprived of GMOs and various chemicals or artificial additives. Almond Buckwheat cookies, quinoa apple granola bars, goji berry cookies, nutrition bars, and candy bars are the most prominent examples of snacks available in the market. Organic snacks are prepared from a variety of inputs such as fruit, vegetables, grains, nuts, meat, and others. These snacks are a sound source of vitamins and protein. Because organic snacks are prepared from organically grown crops that are home to omega-3 fatty acids, antioxidants, and minerals, they pose a low to moderate amount of health problems as compared to conventional snacks. Rapid urbanization, changing tastes and preferences of people, rising health awareness, soaring living standards of people in low-income countries as GDP per capita is on the rise, the growing popularity of OTT platforms like Netflix, and eventful lifestyles of people are factors set to drive the growth of the Organic Snacks Market for the period 2022-2027.

Report Coverage

The report: “Organic Snacks Market Forecast (2022-2027)”, by Industry ARC, covers an in-depth analysis of the following segments of the Organic Snacks Market.

Key Takeaways

• Geographically, the North America Organic Snacks Market accounted for the highest revenue share in 2021. The growth is owing to heavy consumption of RTE and convenient foods, overwhelming obesity rates, strong purchasing power, well-established retail infrastructure, and high health attentiveness among consumers.
• Enlarging demand for RTE foods because of the busy lifestyles of consumers, growing inclination of viewers toward over-the-top media services, swell in obesity cases, growing incidences of stress post-covid-19, and rising disposable incomes of consumers in developing countries are said to be preeminent driver driving the growth of Organic Snacks Market. Expensive nature because of high production cost, rising inflation levels, and strangled production are the factors said to reduce the market growth.
• Detailed analysis of the Strength, Weaknesses, and Opportunities of the prominent players operating in the market will be provided in the Organic Snacks Market report.

Organic Snacks Market Segment Analysis-By Type

The Organic Snacks Market based on the basis of type can be further segmented into frozen, salty & sweet, nutrition bars, candy bars, and others. The salty & sweet segment held the largest share in 2021. The growth is owing to higher demand and consumption. Salted macadamia nuts, guacamole, deviled eggs, sardines, edamame, olives, homemade sweet potato chips, parmesan crisps, roasted chickpeas, and others are a few examples of the healthiest salty snacks that are consumed across the globe. Moreover, nutrition and candy bars are estimated to be the fastest-growing segment with a CAGR of 13.4% over the forecast period 2022-2027. This growth is owing to its aesthetically appealing nature, growing health consciousness among consumers, and growing trend of replacement of heavy meals with compacted bars that are full of nutrition. Candy bars mostly include chocolate bars which are deemed to be a good source of energy.

Organic Snacks Market Segment Analysis-By Distribution Channel

The Organic Snacks Market based on distribution channels can be further segmented into offline and online. The offline segment held the largest share in 2021. The growth is owing to a higher number of retail outlets and most importantly their all-encompassing presence as compared to e-commerce platforms. The offline stores are the primary source of shopping in rural areas because of their underdeveloped infrastructure. Moreover, the upsurge in contemporary retail outlets such as supermarkets/hypermarkets especially in developing countries, the convenience such as a one-stop solution to busy consumers, lucrative deals, and sale support are the prime factors behind their growth. However, the online segment is estimated to be the fastest-growing segment with a CAGR of 13.9% over the forecast period 2022-2027. This growth is owing to enlarging internet penetration in rural areas, prevailing WFH trends, jaw-dropping discount deals, technological revolutions, wide-scale digitalization, and government support through friendly business propositions to lure businesses. On another hand, expanding competition in the telecom sector results in cheaper access to the internet which can be a potent trigger in expanding the presence of e-commerce services in pastoral areas.

Organic Snacks Market Segment Analysis-By Geography

The Organic Snacks Market based on Geography can be further segmented into North America, Europe, Asia-Pacific, South America, and the Rest of the World. North America held the largest share with 39% of the overall market in 2021. The growth in this segment is owing to the factors such as high health attentiveness among consumers, better lifestyles because of prosperous economies, high purchasing power, well-established retail infrastructure, presence of major brands, and high urbanization. Besides, the prevalence of obesity has reached unprecedented proportions in the U.S. which is driving people to adopt snacking as their small intake help in resisting hunger. However, Asia-Pacific is expected to be the fastest-growing segment over the forecast period 2022-2027. This growth is owing to augmenting the middle class in two of the most populous Asian countries India and China. Moreover, various other factors like rapid migration of people from rural to urban areas, growing living standards, bettering retail infrastructure because of swelling capital expenditure of governments and private players, growing GDP per capita income as economic affluence of countries like Indonesia, India, China, Bangladesh is on the rise, are responsible for the market hold.

Organic Snacks Market Drivers

Rising health consciousness among consumers is anticipated to boost product demand

Even though organic snacks aren’t completely safe, still they don’t pose as many health threats as conventional or non-organic snacks. Organic snacks are a good source of minerals, omega-3 fatty acids, and several antioxidants that reduce the risk of various health illnesses. In addition to that, snacking can help reduce weight by satiating hunger. Now considering the jaw-dropping surge in obesity in different countries across the globe, the overall trend of snacking has heightened in recent years. According to World Health Organization, as of 2022, over 1 billion people across the globe are facing the obesity problem. Out of these 1 billion, 650 million are adults, and teenagers and children are accounting for 340 million and 39 million respectively. More than 36 percent adults of in the U.S. are obese as of 2022. Moreover, the widespread prevalence of obesity in various island nations such as Nauru, Cook Islands, Tonga, and others defies description as the body mass index of these nations has crossed the mark of 30. Additionally, a report “Future of snacking” by the NPD group claimed that snacking is proving to be a noteworthy means for people to ease stress, boredom, and sadness. The report also says that in times of turmoil or sadness American consumers eat 36 to 37 percent more snacks than usual. Therefore, the rise in stress and depression cases is emerging as an important driver for the organic snacks market.

Bettering retail infrastructure, growing OTT users, and rising GDP per capita income of developing nations are expected to boost the market growth

After the extensive penetration of the internet in urban and rural areas across the globe, the advent of e-commerce platforms has reformed the retail industry. Nearly 4.6 billion people across the world have internet connection as of 2022; however, the figure is anticipated to reach 7.5 billion by the year 2030. Rising internet users are laying out tons of opportunities for both the retail industry and entertainment platforms like Netflix, Amazon Prime, Disney Hotstar, and others. Netflix subscribers have soared from 148.86 million (Q1 of 2019) to 221.84 in the first quarter of 2022. Over-the-top media services have their fair share in driving the trend of snacking among consumers because watching content on such platforms heightens the craving to eat something in between. Nevertheless, swift urbanization, rising living standards of people, and a surge in GDP per capita incomes of major developing nations like India, China, South Africa, Indonesia, and others are the prominent reasons for market expansion.

Organic Snacks Market Challenges

High costs, rising inflation, and lowered production are anticipated to hamper the market growth

Organic snacks may extend several health benefits but it comes with a price as they are more expensive because of strict production rules and regulations. Moreover, rising inflation rates and the cost of living across the globe are set to be the biggest challenge to the steady growth of the organic snacks market. Sri Lanka’s inflation soared to 21.5 percent in April 2022 from 17.5 percent in February 2022 (8 years' highest). Not just Sri Lanka, America, and many European nations are battling the worst inflation wave in 2022. America’s inflation rates reached 7.5 percent in the second month of 2022 and annual inflation rates in the euro area have soared to 7.4 percent from 5.9 percent in February. The figures are likely to expand in the view of a barrage of sanctions on Russia and heightened oil prices.

Organic Snacks Industry Outlook:

Product launches, mergers and acquisitions, joint ventures, and geographical expansions are key strategies adopted by players in the aforementioned Market. Organic Snacks market top 10 companies include-

1. Beanitos Inc.
2. Cussons Australia Pty Ltd.
3. Loisvlle Vegan Jerky Co.
4. SunOpta Inc.
5. Utz Quality Food LLC.
6. Navitas Organics
7. Kraft Heinz Company
8. Kewpie Corporation
9. Creative Snacks Co.
10. Simple Squares

Recent Developments/Product Launches:

• On April 15, 2021, Brampton, Canada-based company SunOpta (a firm known for its plant-based food and beverages) announced the successful acquisition of two plant and fruit-based food and beverage brands WestSoy and Dream from New York, United States-based natural products company “The Hain Celestial.” The total value of the transaction stands at around $33 million.
• On September 4, 2020, a business combination of Pennsylvania, United States-based popular snack food company “Utz” and New York-based special purpose acquisition firm “Collier Creek” got the nod from CC’s board of directors. The combination has given life to a new firm named “Utz Brands.” The move is likely to strengthen Utz brands’ snacks business.
• On February 12, 2020, California, a United States-based snack food company, known for its roasted chickpea snacks, announced the successful acquisition of Texas, United States-based Beanitos Inc (a firm renowned for its bean packaged chips). The financials of the acquisition were not revealed by the companies.

Relevant Links:

APAC Sweet and Salty Snacks Market – Forecast (2022 - 2027)

Report Code: CPR 0092

South America Sweet and Salty Snacks Market – Forecast (2022 - 2027)

Report Code: CPR 0095

Meat Snacks Market – Forecast (2017-2025)

Report Code: FBR 0280 

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